WASHINGTON (March 28, 2017) – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) edged higher by 0.2 percent in February, following a 0.5 percent gain in January, and a 0.3 percent gain in December, as measured on a three-month moving average (3MMA) basis. All regions posted growth in February.
Also measured on a 3MMA basis, chemical production was mixed. There were gains in the production output trend of coatings, plastic resins, other specialties, synthetic rubber, organic chemicals, adhesives, fertilizers, pesticides and pharmaceuticals. These gains were offset by declines in the output trend in inorganic chemicals, consumer products, pigments, manufactured fibers and industrial gases.
Nearly all manufactured goods are produced using chemistry in some form or another. Thus, manufacturing activity is an important indicator for chemical production. On a 3MMA basis, manufacturing activity rose 0.4 percent in February, the largest gain since November 2014. Production expanded in several chemistry-intensive manufacturing industries, including food and beverages, motor vehicles, machinery, fabricated metal products, computers, semiconductors, petroleum refining, rubber products, plastic products, paper, and structural panels.
Compared to February 2016, U.S. chemical production was off by 0.1 percent on a year-over-year basis, a moderating trend. Chemical production remained ahead of year ago levels in all regions, except the Mid-Atlantic and Southeast.
The chemistry industry is one of the largest industries in the United States, a $797 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96 percent of manufactured goods are touched by chemistry. The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. The U.S. CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. Thus, the reading in February reflects production activity during December, January, and February.